Mumbai, April 05, 2016: Cox & Kings Ltd. (‘C&K’) has sold 100% of LateRooms UK Ltd. to Malvern Enterprises UK Ltd. (‘Malvern’) for GBP 20.0 million.
C&K’s 65.58%-owned subsidiary, Holidaybreak Ltd. (‘Holidaybreak’), has sold 100% of its Superbreak business to Malvern in a transaction whereby Holidaybreak received a net cash consideration of GBP 9.25 million. The proceeds were used to pay off debt.
C&K has bought a 49% stake in Malvern for GBP 6.37 million.
Malvern is 51% owned by a reputed Europe-based private equity investor.
The transaction will enable Malvern to independently follow its own strategic growth path in the underpenetrated city-breaks market within the online package-tour space. Brands Superbreak and LateRooms are likely to gain substantially from a unified management team under the strategic guidance of the private equity investor and C&K.
The transaction is effective March 31, 2016.
C&K’s 49% equity stake in Malvern will be accounted for as an Investment in Associate Company, with its proportionate share of profit/(loss) reflected in C&K’s P&L from FY17 onwards.
The goodwill write-off on sale of Superbreak is ~GBP 71.4 million.
Corporate Comm India (CCI Newswire)
